(g) When the recipient no longer needs the equipment, the equipment may be used for other
activities in accordance with the following standards. For equipment with a current per unit fair market
value of $5000 or more, the recipient may retain the equipment for other uses provided that
compensation is made to the original Federal awarding agency or its successor. The amount of
compensation shall be computed by applying the percentage of Federal participation in the cost of the
original project or program to the current fair market value of the equipment. If the recipient has no
need for the equipment, the recipient shall request disposition instructions from the Federal awarding
agency. The Federal awarding agency shall determine whether the equipment can be used to meet the
agency's requirements. If no requirement exists within that agency, the availability of the equipment
shall be reported to the General Services Administration by the Federal awarding agency to determine
whether a requirement for the equipment exists in other Federal agencies. The Federal awarding
agency shall issue instructions to the recipient no later than 120 calendar days after the recipient's
request and the following procedures shall govern.
(1) If so instructed or if disposition instructions are not issued within 120 calendar days
after the recipient's request, the recipient shall sell the equipment and reimburse the Federal
awarding agency an amount computed by applying to the sales proceeds the percentage of
Federal participation in the cost of the original project or program. However, the recipient shall
be permitted to deduct and retain from the Federal share $500 or ten percent of the proceeds,
whichever is less, for the recipient's selling and handling expenses.
(2) If the recipient is instructed to ship the equipment elsewhere, the recipient shall be
reimbursed by the Federal Government by an amount which is computed by applying the
percentage of the recipient's participation in the cost of the original project or program to the
current fair market value of the equipment, plus any reasonable shipping or interim storage
costs incurred.
(3) If the recipient is instructed to otherwise dispose of the equipment, the recipient shall
be reimbursed by the Federal awarding agency for such costs incurred in its disposition.
(4) The Federal awarding agency may reserve the right to transfer the title to the Federal
Government or to a third party named by the Federal Government when such third party is
otherwise eligible under existing statutes. Such transfer shall be subject to the following
standards.
(i) The equipment shall be appropriately identified in the award or otherwise made
known to the recipient in writing.
(ii) The Federal awarding agency shall issue disposition instructions within 120
calendar days after receipt of a final inventory. The final inventory shall list all equipment
acquired with grant funds and federally-owned equipment. If the Federal awarding
agency fails to issue disposition instructions within the 120 calendar day period, the
recipient shall apply the standards of this section, as appropriate.
(iii) When the Federal awarding agency exercises its right to take title, the
equipment shall be subject to the provisions for federally-owned equipment.